UAE and Saudi Arabia Propel MENA M&A Activity to $92.3 Billion in 2024
In 2024, the Middle East and North Africa (MENA) region experienced a significant surge in merger and acquisition (M&A) activity, recording 701 deals totaling $92.3 billion. This marks a 3% increase in deal volume and a 7% rise in total value compared to 2023, as reported by EY’s MENA M&A Insights 2024.
Key Drivers of Growth
The Gulf Cooperation Council (GCC) countries were at the forefront, accounting for 580 deals worth $90 billion. This growth is largely attributed to substantial reforms in capital markets, strategic policy changes, and enhanced efforts to attract foreign investments. Cross-border transactions played a pivotal role, representing 52% of the total deal volume and 74% of the deal value.
Brad Watson, EY MENA Strategy and Transactions Leader, noted, “In 2024, the MENA region witnessed positive developments in the M&A space with a year-on-year increase in activity as well as overall deal value.” He emphasized the significant interest in sectors such as insurance, asset management, real estate and hospitality, power and utilities, and technology.
Major Deals and Active Players
Sovereign wealth funds (SWFs) like the Abu Dhabi Investment Authority (ADIA), Mubadala Investment Company from the United Arab Emirates (UAE), and the Public Investment Fund (PIF) from Saudi Arabia were instrumental in driving M&A activity. The UAE reported the region’s largest M&A deal of the year with the acquisition of Truist Insurance by Clayton Dubilier & Rice, Stone Point Capital, and Mubadala Investment for $12.4 billion. Following this, Saudi Aramco acquired a 22.5% stake in Rabigh Refining and Petrochemical Company from Sumitomo Chemical for $8.9 billion. Additionally, a consortium including PAG, Mubadala, and ADIA acquired a 60% stake in China’s Zhuhai Wanda Commercial Management Group for $8.3 billion.
Outbound and Inbound Transactions
Outbound deals dominated the MENA M&A landscape, contributing 61% of the total transaction value with 199 transactions amounting to $56.6 billion. The United States emerged as the largest acquiring country outside the region by volume and value, with 48 transactions totaling $4.6 billion.
Inbound M&A activity also saw a notable uptick, with 163 deals valued at $11.4 billion, marking an 18% increase in volume and a 42% surge in value compared to 2023. The UAE remained the preferred destination for investors, achieving the highest volume and value for inbound transactions with 96 deals valued at $7.6 billion, representing 67% of the total deal value. The technology sector led in deal volume, driven by the country’s focus on artificial intelligence, cybersecurity, and digital transformation.
Sector Highlights
The technology and consumer products sectors were at the forefront, each experiencing a 10% year-on-year increase in deal volume. The oil and gas sector recorded the highest disclosed deal value in 2024, reaching $9 billion, primarily due to Saudi Aramco’s acquisition in Rabigh Refining and Petrochemical Company.
Anil Menon, EY MENA Head of M&A and Equity Capital Markets Leader, stated, “In 2024, technology remained the most attractive sector for investors, accounting for 23% of total inbound and domestic deal volume.” He highlighted the ongoing “productivity renaissance fueled by technology and AI,” which is influencing capital allocation and M&A activities.
Domestic M&A Activity
Domestic M&A transactions contributed 48% of the total deal volume in 2024, with 339 deals and a combined disclosed value of $24.4 billion. The technology and consumer products industries have been drawing increased investor interest, fueled by digital transformation and evolving consumer behaviors in the region. Both sectors together contributed 35% of the total domestic deal volume.
Outlook for 2025
The momentum in M&A activity is expected to continue into 2025, driven by ongoing economic reforms, strategic policy initiatives, and a focus on technology and innovation. The positive trajectory in M&A activities is anticipated to persist, with investors keen on sectors that offer innovative solutions and growth potential.
In summary, 2024 was a landmark year for MENA’s M&A landscape, with the UAE and Saudi Arabia leading the charge. The region’s proactive economic strategies, coupled with a focus on technology and innovation, have positioned it as a hub for significant investment opportunities.
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